Directional Energy and Sentiment Signals in the Dual VADER Indicator

Summary

This document presents a visual revision of a dual VADER indicator. It retains the underlying calculations from an earlier version, while displaying the longer-period sentiment measure as an area and representing demand and supply energy as directional bars. The energy measure starts with price change scaled by recent bar range, optionally adjusted by relative or full volume, then separates positive and negative components and smooths them into demand, supply, and net readings.

The shorter smoothed net energy line crossing zero generates directional alerts and entries; crossings of the longer sentiment line provide additional speed-up or slow-down alerts. The chart also distinguishes whether sentiment is rising or falling in magnitude. Published settings list a 45-minute BTC/USDT futures backtest over roughly a month, but no performance evidence. The document is primarily about indicator calculation and presentation, so it does not establish that the signals are profitable; volume scaling, smoothing choices, and interpretation of indicator crossings require validation.

Key ideas

• The indicator compares smoothed demand energy with supply energy to form a net directional reading.
• Price changes are normalized by recent bar range, with volume scaling available as an option.
• The long-period sentiment series is displayed as an area, while energy is shown with directional bars.
• Zero crossings of the smoothed net reading trigger directional alerts and strategy entries.
• The published backtest settings do not include results that demonstrate predictive value.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.